The JobKeeper legislation has now been enacted.
The legislation, explanation notes, and Fact Sheets have been updated on the ATO & the Treasury website. See links to these at the bottom of this article
Please note that this document is especially to inform small & medium not-for-profit organisations and particularly Australian Churches. The information we provide may be helpful for businesses, but it is not created for business advice. We recommend that businesses receive advice from their BAS Agents or Tax Accountants.
We have reviewed the legislation, the accompanying Explanatory statement and ATO Factsheets especially in relation to Employer Edibility and the processes for NFP organisations and found the following information that we believe you will find helpful. It provides clarification of many of our and your questions so far.
After an employer determines that it is eligible for JobKeeper payments, the next step is to determine the eligible employees.
Eligible employees are employees who:
- are currently employed by the eligible employer (including those stood down or re-hired);
- were employed by the employer at 1 March 2020;
- are full-time, part-time, or long-term casuals (a casual employed on a regular and systemic basis for longer than 12 months as at 1 March 2020);
- are a permanent employee of the employer, or if a long-term casual employee, not a permanent employee of any other employer;
- are at least 16 years of age at 1 March 2020;
- are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;
- were a resident for Australian tax purposes on 1 March 2020; and
- are not in receipt of a JobKeeper Payment from another employer.
- Employees receiving Parental Leave Pay from Services Australia are not eligible for the JobKeeper Payment. However, employees on parental leave from their employer will be eligible.
When the employer has identified the eligible employees:
1. The employer must notify the employees that you intend to apply for JobKeeper payments.
2. Then the employees must:
a. provide a notice to their employer agreeing to be nominated by the employer as an eligible employee under the JobKeeper, and
b.confirm they have not agreed to be nominated by another employer; and
c. confirm that they do not have permanent employment with another employer if they are employed as a casual employee with this employer.
Employer next Steps
1. Where possible, continue or begin to pay employees from 30th March
2. Ensure that each eligible employee receives at least $1,500 per fortnight (before tax). Employees who receive $1,500 per fortnight or more from their employer will continue to receive their regular income according to their prevailing workplace arrangements. For employees that have been receiving less than this amount, the employer will now need to pay them, at a minimum, $1,500 per fortnight before tax.
3. When notified by the ATO, provide information to the ATO on all eligible employees and Turnover information. For most businesses or not-for-profits, the ATO will use STP data to pre-populate the employee details for the business or not-for-profit.
Xero will make the process a whole lot easier
Xero Payroll will soon help you process JobKeeper payments you’ve made to workers, including those made before JobKeeper was passed by Parliament. The software will create a pay item so that you can accurately report these payments to the ATO. You’ll just need to add the item to your employee’s payslip. We’ll provide a way to process the JobKeeper payment and report it to the ATO. Most of this will happen seamlessly in the background while you’re filing STP.”
Click here for information from their blog
FAQS, Some helpful statements from the ATO’s FAQ’s
PAYGW AND SUPERANNUATION ON THE JOBKEEPER PAYMENT
You must pay a minimum of $1,500 per fortnight to your eligible employees, withholding income tax as appropriate. The $1,500 per fortnight per employee is a before tax amount. Where an employee is paid more than $1,500 per fortnight, the employer’s superannuation obligations will not change. Where an employee is having their wages topped up to $1,500 per fortnight by the JobKeeper Payment, it will be up to the employer if they want to pay superannuation on any additional wages paid by the JobKeeper Payment
Robust eligibility rules to stop double payment
An individual can only benefit from one JobKeeper Payment per fortnight. An individual must agree to be nominated as an eligible employee to receive the JobKeeper Payment by that particular employer and confirm that he or she has not agreed to be nominated by any other employer. Making a false statement results in an individual becoming ineligible. Any resulting overpayment may be recovered directly from the individual. Making a false statement also renders the individual liable for criminal and administrative penalties. The ATO will undertake compliance activities designed to identify multiple payments to individuals, including by utilising existing reporting such as Single Touch Payroll reporting.
IF WE HAVE STOOD DOWN OUR EMPLOYEES AFTER 1 MARCH 2020, AND ARE NO LONGER PAYING THEM, DO WE NEED TO PAY THEM, FOR WHAT PERIOD AND BY WHEN?
Yes. You can claim the JobKeeper Payment for employees that were stood down after 1 March 2020. To be eligible in relation to these employees, you will need to pay them a minimum of $1,500 per fortnight (before tax) for the payment periods of the JobKeeper Payment.
The first payment period is from 30 March 2020 to 12 April 2020. Where an employer pays their staff monthly the monthly payment must be equivalent to the required fortnightly payment.
For all following payment periods you will need to continue to pay your employees a minimum of $1,500 per fortnight (before tax), before the end of the payment period.
OUR ORGANISATION IS STILL OPERATING AND OUR EMPLOYEES ARE STILL WORKING. HOW WILL OUR PAYMENTS TO THEM BE AFFECTED?
In many cases, your payments and obligations to eligible employees will not change. Your business, if eligible, will receive a $1,500 per fortnight subsidy to support their continued employment. However, if any eligible employee currently earns less than $1,500 before tax per fortnight, you will need to pay them $1,500 per fortnight before tax to receive the JobKeeper Payment.
FAQS, for employees
I AM A CASUAL WORKER. AM I ELIGIBLE TO RECEIVE THE PAYMENT?
You are eligible for the payment if you have been with your employer for 12 months at 1 March 2020 on a regular and systematic basis. Apart from this, casual employees are not eligible for the JobKeeper Payment. Also, you are only eligible for the JobKeeper Payment as a casual employee if you are not a permanent employee of any other employer
I HAVE MULTIPLE EMPLOYERS. WILL I RECEIVE MULTIPLE PAYMENTS?
No. Every employee is only able to receive one payment from one employer, their primary employer. Your employers who have elected to participate in the JobKeeper Payment scheme may ask you to indicate whether they are your primary employer. If you are employed by more than one employer, you should contact your employers and indicate to them which is your primary employer. To be eligible to receive the JobKeeper Payment from your primary employer, you must be a permanent employee of that employer and if you are a long-term casual, not a permanent employee of any other employer.
You can continue to receive non-JobKeeper supported income from your non-primary employer.
Legislation, the accompanying Explanatory statement and ATO Factsheets
Legislation – https://bit.ly/JKFedGovtRule090420
Explanatory Statement – https://bit.ly/JKEM090420
Employer Fact Sheet – https://bit.ly/JKEmployers090420
Employee Fact Sheet – https://bit.ly/JKEmployees090420
FAQ – https://bit.ly/JKFAQ
Integrity Fact Sheet – https://bit.ly/JKIntegrityFactSheet
General Fact Sheet – https://bit.ly/JKGenFactSheet
Benkorp is working hard to help small & medium not-for-profit organisations and particularly Australian Churches during this difficult time. Our aim to inform you about these great government benefits as clearly and as practically as we can. Please note that this information has only just been legislated and is changing and is still being clarified as we write and therefore subject to change. We are doing our best to keep up to date and keep you informed as quickly as possible.
In Case you missed it here is the link to the post in regards to Employer Eligibility, it is important to establish that before your Employee Eligibility: